PrinciplesOfProductDevelopmentFlow.EconomicView

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E1: The Principle of Quantified Overall Economics
  • Select actions based on quantified overall economic impact

E2: The Principle of Interconnected Variables
  • We can't just change one thing.

E3: The Principle of Quantified Cost of Delay
  • If you only quantify one thing, quantify the cost of delay

E4: The Principle of Economic Value-Added
  • The value added by an activity is the change in the economic value of the work product

E5: The Inactivity Principle
  • Watch the work product, not the worker

E6: The U-Curve Principle
  • Important trade-offs are likely to have U-curve optimizations

E7: The Imperfection Principle
  • Even imperfect answers improve decision making

E8: The Principle of Small Decisions
  • Influence the many small decision

E9: The Principle of Continuous Economic Trade-offs
  • Economic choices must be made continuously

E10: The First Perishability Principle
  • Many economic choices are more valuable when made quickly

E11: The Subdivision Principle
  • Inside every bad choice lies a good choice

E12: The Principle of Early Harvesting
  • Create systems to harvest the early cheap opportunities

E13: The First Decision Rule Principle
  • Use decision rules to decentralize economic control

E14: The First Market Principle
  • Ensure decision makers feel both cost and benefit

E15: The Principle of Optimum Decision Timing
  • Every decision has its optimum economic timing

E16: The Principle of Marginal Economics
  • Always compare marginal cost and marginal value

E17: The Sunk Cost Principle
  • Do not consider money already spent

E18: The Principle of Buying Information
  • The value of information is its expected economic value

E19: The Insurance Principle
  • Don't pay more for insurance than the expected loss

E20: The Newsboy Principle
  • High probability of failure does not equal bad economics

E21: The Show Me the Money Principle
  • To influence financial decisions, speak the language of money

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